There may be some upside risk to the US September CPI data next Thursday, especially the core CPI. According to the S&P Global Purchasing Managers Index flash reading, corporate purchasing prices rose at the fastest pace in 6 months. Although the ISM manufacturing survey showed a decline, the non-manufacturing report confirmed the view that price pressures accelerated. Therefore, if the data shows that there is some stickiness in inflation, more investors may believe that the Fed will act as planned and cut interest rates by 25 basis points in both November and December decisions.
